Research Of Deposit Insurance System And Itssubsequent Effect In China

With the deepening reform of China’s financial system and the advance of interest rate liberalization,the deposit insurance system has been insufficient to maintain financial stability and protect the interests of the public.As a result,the construction of a new deposit insurance system is getting more and more necessary.Third Plenary Session of the Party’s eighteen-second session of the NPC meeting spoke about matters related to the deposit insurance system in our country.Ultimately,our country has announced deposit insurance regulations on April 1,2015 and implemented from May 1.In general,the appearance of a new policy there will has two-sided nature.So,the impact of the introduction of“Deposit Insurance”on China’s financial markets exists duality with no exception.Based on typical explicit deposit insurance system abroad and explicit deposit insurance system about to implement in China,the paper combines game and comparative theory to demonstrate subsequent effects of deposit insurance system.Eventually,the paper makes relevant policy recommendations to prevent negative effects of the deposit insurance system.The article is composed of six parts.The first part is an overview of article background、significance、research methods、ideas、innovation、deficiencies and the deposit insurance system for the literature review study abroad preface.The second part is related to theoretical study of the deposit insurance system.Firstly,it elaborates on concepts and evolution of deposit insurance system.Then,it analyzes explicit deposit insurance system.The third part is to analyze the effect of the US on the collapse of Lehman brothers in the dominant deposit insurance system.The fourth part is based on foreign explicit deposit insurance system for China’s dominant deposit insurance system elaborate subsequent effects.The fifth part is to propose policy recommendations related to the subsequent negative effects of the deposit insurance system.The sixth part is mainly to summarize on policy of explicit deposit insurance system to be implemented.